Financial and Operating Results for the three and nine months ended September 30th 2013
During the three and nine months ended September 30, 2013 the Company continued its appraisal and development campaign in respect of the Atrush petroleum property located in the Kurdistan Region of Iraq which constitutes the continuing operations of the Company.
Atrush currently generates no revenues. The net loss in the first three quarters of the current year principally relates to the general and administrative expenses and share based payments expense incurred in respect of the continuing operations of the Company.
Outlook
The outlook to the end of the year 2013 is as follows:
Atrush Block
Following the KRG approval of Phase 1 plans are being implemented to achieve First Oil of 30,000 bopd by early 2015. The Contractor group and the MNR are working closely to fast-track First Oil.
Drilling of the AT-4 appraisal/development well is expected to continue to year end. Depending on well results, numerous well tests may be conducted.
The FEED for the Phase 1 Production Facilities was completed in October. Bids for the facilities are expected in November, with contracts likely to be awarded by the end of year 2013.
The Company anticipates that the proceeds of a USD 150 million bond issue, expected to close on November 13, 2013, will enable it to finance development activities to achieve first production. Future development phases of the Atrush field are expected to be financed using cash flows from the sale of oil production from the Atrush Block.
New Ventures
As part of its normal business the Company continues to evaluate new opportunities in the MENA region.
(Source: Shamaran)
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